Originally published February 20 2005
Mastercard's new anti-fraud system sends instant messages to consumers' cell phones after a suspicious purchase
by Mike Adams, the Health Ranger, NaturalNews Editor
In order to reduce credit card fraud, Mastercard is implementing a system that will check for suspicious purchases on their credit cards and alert the customer almost instantly with a text message on their mobile phone. Mastercard is hoping to promote the system to banks so that they can have it in place in the next few months.
The system, devised by MasterCard, is designed to speed up vital information to customers and reduce cases of multiple card fraud.
UK credit and debit card fraud cost �400m last year and criminal methods have become increasingly sophisticated.
MasterCard said the system would boost the rate of fraud detection and provide more protection to cardholders.
If they agree to sign up to the scheme, cardholders will receive a text message on their mobile phones immediately their bank is aware of a 'high risk' transaction on their card.
Cases of unusual transactions are currently dealt with manually by most banks, meaning it can take an hour or more to contact a customer.
MasterCard says the new system will trigger an automated response from banks allowing them to contact customers within minutes, potentially sending up to a 1,000 text messages an hour.
It believes the system - created in partnership with mobile payment firm mBlox - will boost card fraud detection rates to about 90% while reducing banks' operational costs.
MasterCard will promote the new technology to leading banks - which issue credit cards - in the hope of making it available to consumers in the next few months.
The firm - which has 650 million customers worldwide - also plans to offer the technology to rival payment operators.
The total cost of plastic card fraud in the UK actually fell in 2003.
However, the most common form of card fraud - in which a consumer's card details are 'stolen' and used to make purchases by phone or over the internet - is on the rise.
"Credit card fraud remains a top priority for banks around the world and any technology that addresses this challenge is welcomed," said Phil Curtis, head of cards fraud at Lloyds TSB.
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